NZDUSD 4Hr Pullback Resistance
Further downside action may see eyes initially on the 0.7120-0.7100 area for potential support. If that level manages to hold, bulls might breathe a sigh of relief, and another attempt higher could be initiated, targeting again the key resistance area between the 0.72 handle (which coincides with the 0.38 Fib of the downtrend starting from July 2014.) and 0.7250 (NZDUSD Forex Trading Analysis).
NZDUSD Forex Trading Analysis
Currently, the NZDUSD pair trades modestly flat at 0.7172, flirting with fresh session lows posted at 0.7168 last minutes. The NZDUSD pair faced rejection at 5-DMA in early Asia and subsequently drifted lower, now running through fresh offers as the US dollar resumes upward rally versus its six major competitors.
NZDUSD Short Setup Trendline
The buying interest behind the US dollar picked-up pace since the late-Asian trades, knocking-off the NZDUSD pair to the mid-point of 0.71 handle. Next of relevance for the major remains the weekly jobless claims and factory orders data from the US docket, lined up for release later in the NA session (NZDUSD Forex Trading Analysis).
NZDUSD Break And Retest
The S&P 500 rebounded a touch yesterday with a jump of +0.3%, whilst Asian markets were mixed to mildly higher overnight (Nikkei +1.0%). The European markets are mildly higher in the early moves, with the DAX outperforming. In forex markets the mild dollar strength is pulling the euro, sterling and the yen marginally weaker, however the Aussie dollar is holding up well today after Australian retail sales beat analyst estimates.
The past few weeks have been characterised by consistent bull and bear moves that tend to last between one and two weeks before reversing. There is a mild uptrend channel over the past year, but this latest corrective candle could now signal another corrective period. The hourly chart shows $0.7160 support having been breached which completes a small top pattern and around 70 to 100 pips of initial downside.